Estonian government to push gas sector reform

  • 2010-08-03
  • TBT Staff

The Estonian government is hoping to reduce Gazprom's grip on the industry.

TALLINN - Estonia's Cabinet of Ministers has agreed to push for a reorganization of the state-owned gas company, splitting it into smaller parts in a bid to wrest more control of the market from Russia's Gazprom.

“It is of economic importance for Estonia to get in the future gas from elsewhere than from one single supplier – Gazprom,” said Secretary General of the Reform Party Kristen Michal.

The ruling coalition has announced that it will begin work on drafting laws that would separate the gas transmission networks from the company selling gas

“If the owners are different then there can be competition which gives a chance that the prices will be lower to the consumers,” he said.

Despite support at the highest levels of government, the move has been criticized by the company management.

“The separation does not bring new suppliers, reduce the prices, nor reduce Gazprom’s importance in the gas that’s used in Estonia,” Raul Kotov, board member of Eesti Gaas, said in an interview with Aripaev.